What Is Ribbon Finance (RBN)?

Ribbon Finance (RBN) operates as a blockchain-based protocol offering a suite of advanced decentralized financial (DeFi) products. The protocol's core innovation lies in its amalgamation of complex financial instruments such as options contracts, futures, and fixed income strategies, aimed at optimizing returns for its users.

Of particular note is Ribbon Finance's strategic focus on ‘stablecoin’ lending preferences among users. In this context, the platform leverages option-writing strategies to generate enhanced yields while maintaining exposure to an underlying asset. 

Ribbon Finance endeavors to democratize access to such sophisticated financial methods through the deployment of option vaults, which rely on smart contracts to automate various options strategies. These smart contracts operate as digital protocols on the blockchain, allowing users to deposit their assets and initiate specific options strategies seamlessly. The cost efficiency of option vaults stems from aggregating transactions into bulk operations, thereby reducing associated gas fees.

At its core, Ribbon Finance seeks to introduce structured financial products into the DeFi landscape. Structured products are pre-packaged investments that typically encompass interest-bearing assets and derivative instruments. These products are often tied to an index or a basket of assets, providing investors with tailored risk-return profiles.

The platform's inaugural offering, the Theta Vault, is centered around two automated options strategies for ETH and WBTC: covered call and put selling. Ribbon v2, the latest iteration of the Theta Vault, refines and decentralizes its operations, enhancing capital efficiency and providing improved returns on investments. Notably, it eliminates withdrawal fees for users. Moreover, through the MetaVault feature, users can access high-yield farming strategies while mitigating gas costs.

In addition to its product offerings, Ribbon Finance launched its native RBN token. Initially conceived as a governance token, RBN has evolved to play a more integral role within the Ribbon ecosystem. It serves as a means to incentivize various participants, including liquidity miners and grant recipients. Furthermore, RBN consolidates all present and future Ribbon ecosystem assets and functionalities, embodying the platform's value proposition.

History of Ribbon Finance

Julian Koh is the cofounder of Ribbon Finance. He has previously worked with Coinbase as a software engineer. The team officially announced Ribbon on February 15, 2021.

How Are RBN Tokens Staked?

A key aspect of Ribbon tokenomics is the staking architecture. RBN holders can stake their RBNs on the platform and receive Staked Ribbons (sRBN) in exchange. The sRBN uses on-chain governance to execute proposals autonomously instead of a loose consensus. 

The team designed the sRBN token so that the more long-term users stake their RBN tokens, the more voting power they receive. Additionally, long-term users receive higher future RBN rewards and a more significant share in the Ribbon protocol revenue.

How to Buy Ribbon Finance (RBN) Tokens

You have a lot of options when it comes to Ribbon Finance (RBN), including Coinbase. You can buy Ribbon Finance on Coinbase.com or Coinbase app, anywhere Coinbase is available.